Butane Market to Grow Substantially at USD 203.26 Billion by 2020 Butane Market 2020

Butane Market to Grow Substantially at USD 203.26 billion by
2020: Radiant Insights, Inc
Global butane market is expected to reach USD 203.26 billion by 2020. Increasing government support to
promote the use of LPG as a domestic fuel particularly in Asia Pacific and Africa is expected to remain a
key driving factor for global butane market over the next six years. Growth of global natural gas vehicle
(NGV) industry is also expected to have a positive influence on the market growth. Rapid petrochemical
capacity expansion particularly in Middle East and Asia Pacific is expected to further support the market
growth over the forecast period. Volatile raw material prices and ban on MTBE based gasoline blending
across several states in the U.S. on account of ground water contamination is expected to remain key
challenges for market participants.
LPG emerged as the leading application segment in the global butane market and accounted for 66.1% of
total volume in 2013. Increasing LPG adoption on account of subsidies offered by governments
particularly in India and China is expected to drive butane demand for LPG. Petrochemical is expected to
witness highest growth rate over the forecast period. The segment is expected to grow at an estimated
CAGR of 2.9% from 2014 to 2020. Emergence of Middle East as a major petrochemical manufacturing
hub is expected to drive butane demand for petrochemical applications.
Read Complete Report with TOC @ http://www.radiantinsights.com/research/butane-marketanalysis-by-application-lpg-petrochemicals-refinery-and-segment-forecasts-to-2020
Further key findings from the study suggest:
Global butane demand was 209.39 million tons in 2013 and is expected to reach 250.36 million tons by
2020, growing at a CAGR of 2.6% from 2014 to 2020.
Residential/commercial was the leading application segment for LPG and accounted for over 45% of total
market volume in 2013. Auto fuel is expected to witness highest growth rate over the next several years
on account of shift in consumer preference towards natural gas vehicles. This shift has been primarily
driven in countries such as Poland, Turkey, South Korea and Japan.
Asia Pacific dominated the global butane market and accounted for 29.9% of total volume in 2013. Asia
Pacific is also expected to witness highest growth over the forecast period. Butane demand in the region is
expected to grow at a CAGR of 3% from 2014 to 2020. Increasing LPG consumption for cooking &
lighting in emerging markets of China and India is anticipated to drive the regional market over the next
several years. MENA (Middle East & North Africa) is also expected to show significant growth rate over
the forecast period owing to expansion of operating refineries and petrochemical complexes in Saudi
Arabia, UAE and Qatar.
The global butane market is highly fragmented with top four companies accounting for just over 35% of
total market. The market is dominated by top oil & gas companies which have their presence across the
value chain. Some of the key companies operating in the global butane market include Chevron, British